GDPR and employee benefits in the UK

Over a year and a half has passed since the introduction of the General Data Production Regulation (GDPR), which came into force in May 2018.

The regulation has transformed the way businesses in the UK handle confidential information belonging to customers and continues to provide greater certainty about security to individuals into 2020.

In this article by Pacific Prime UK, we will review the importance of the GDPR and discuss the implications for employers and employee benefits.

What is the GDPR?

The GDPR at a glance is Europe’s latest framework for data protection laws, which outlines everything from scope and definitions, to the principles, expectations, and enforcement measures it introduces. It is a more robust form of regulation compared to the previous 1995 data protection directive, comprising of 88 pages and 99 articles.

What are the key business benefits of the GDPR for businesses in the UK?

Being GDPR compliant will yield the following key benefits for businesses in the UK:

Improved consumer confidence

GDPR’s security practices help to bolster a business’ reputation, demonstrating to customers that the organisation has a vigorous data governance system in place. Additionally, being GDPR compliant will prove to customers that your business is a good custodian of data processing and handling. This improves consumer confidence in the long run and strengthens the business-consumer relationship.

Better data security

With UK businesses at risk of cybersecurity breaches, GDPR compliance helps by laying the groundwork for improved data security. With the volume of threats and sophistication of attacks on UK businesses every day, a GDPR-compliant framework will help to extend your cybersecurity practices and buffer against serious cyber issues.

Better alignments with developing digital technology

GDPR compliance goes hand in hand with evolving technology. How you may wonder? Well, the fact that technology is growing so fast that being GDPR compliant means businesses have to head towards improving network, endpoint and application. Businesses that wish for a sustainable future, will need to invest in their IT infrastructure to keep up with the needs of growing databases and information.

By shifting towards the latest technologies like virtualization, cloud computing, artificial intelligence and the Internet of Things (IoT), two possibilities arise:

1. Better management of customer and employee data.
2. Better access for customers to improved platforms for viewing secure information, augmented products, services and processes.

All in all, the aforementioned benefits demonstrate the positive impact that GDPR compliance will have on UK businesses if upheld.

What the risks of non-compliance with the GDPR?

There are significant consequences for businesses that remain ignorant of the GDPR and stand to be non-compliant.

Fines for non-compliance

Businesses that are in breach of the regulation can be fined a maximum of EUR 20 million, or 4% of the worldwide annual revenue of the prior financial year (whichever is greater).

Should a minor infringement take place, the business could be fined up to EUR 10 million, or 2% of their annual revenue of the prior financial year (whichever is greater). These fines are substantial and all businesses will want to ensure that the organisation ticks all the boxes for GDPR compliance.

Worst case scenario – damaged business reputation

As with all things sensitive and fragile, if you offer little protection or complete neglect, especially when it comes to being GDPR compliant, then, as a business you may risk harming your brand’s reputation. The worst case, which most may perceive as more severe than a fine is a damaged reputation and little comeback in regaining trust and value from customers.

The GDPR and its implications for employers and employee benefits

Any business that retains and withholds personal data, including data relating to their employees ( for example, health information), needs to comply with the GDPR.

As technology advances, businesses need to consider a wide spectrum of digital employee data held on IT systems, platforms, networks and even servers.

If your business offers employee benefits, it is important to be aware of the risks associated with handling and processing employee data, such as:

• Sending your employees’ personal data to the wrong recipient (e.g.by using an incorrect email address)

• Sending your employee data through insecure channels (e.g. without proper encryption methods and security checks)

• Sending your employee data to multiple places or platforms (which increases the risk of a breach)

If any of the above risks were to surface then the business could potentially be fined for non-compliance.

By offering employee benefits, your business acts as a data controller and therefore, falls under the governance of GDPR. More so, your business may be jointly liable for any mishandling of employee information by data processors. These include third-party companies, such as health insurance companies, employee benefit providers, legal teams and so forth. Thus, it is worth making sure that you complete your due diligence of third-party providers before giving them access to sensitive health information belonging to your employees.

How to find an employee benefits provider that is GDPR compliant

Finding out a compliant third-party provider of employee benefits can be a challenging task, especially if you need to look out for one that is due diligent and meets the requirements of the GDPR. With that said, if you are a business in need of some impartial advice and direction, then Pacific Prime UK is a good starting point. Our broad range of insurance plans ranging from individual health insurance, family health insurance to corporate insurance and much more, can offer you and your employees the satisfaction needed wherever in the UK or abroad.

As Pacific Prime’s main contact for Europe, you will have access to a wealth of knowledge and information on the providers available to deliver outstanding employee benefits options. Additionally, with two decades worth of employee benefits experience under our belt, you can be sure to get the best solutions that meet and go beyond your expectations.

Our expert corporate teams have the unrivalled expertise necessary to assist businesses of all sizes in obtaining and managing global, compliant benefit solutions.

For a full comprehensive read on the latest GDPR, be sure to download our free GDPR and employee benefits guide.

Contact us today for more information!